COST ACCOUNTING STANDARDS BOARD SALARIES AND EXPENSES REPORTER For expenses of the Cost Accounting Standards Board necessary to carry out the provisions of Section 719 of the Defense Production Act of 1950, as amended (Public Law 91-379, approved August 15, 1970), [$1,850,000], $1,800,000. (Legislative Branch Appropriation Act, 1979.) Justification of Estimates Fiscal Year 1980 Section 103, title I, of the 1970 amendment (Public Law 91-379) to the Defense Production Act of 1950, established as an agent of the Congress a Cost Accounting Standards Board. This legislation provides that the Board shall consist of the Comptroller General of the United States who shall serve as Chairman and four other members appointed by the Comptroller General. The Act empowers the Board to appoint an Executive Secretary at a rate of compensation not to exceed the rate prescribed for level IV of the Federal Executive Salary Schedule. The enabling legislation provides that three Board members appointed from private life will receive compensation at a rate of one two-hundredsixtieth of the rate prescribed for level IV ($50,000 per annum) of the Federal Executive Salary Schedule for each day in which he is engaged in the actual performance of duties vested in the Board. The enabling legislation also provides that the Comptroller General (who serves as Chairman) and one member to be named from Government would continue to receive the compensation of his regular position from the agency employing him. The principal function of the Board is to develop and promulgate Cost Accounting Standards designed to achieve greater uniformity and consistency in the cost accounting practices followed by defense contractors and subcontractors under negotiated defense procurements in excess of $100,000. The Standards, rules, and regulations promulgated are to be followed in estimating, accumulating, and reporting costs of defense contracts. The budget estimate for Fiscal Year 1980 is $1,800,000. This estimate is $50,000 less than the amount appropriated in Fiscal Year 1979. Total Personnel Compensation. This estimate covers the fiscal year 1980 salary costs for 35 permanent positions and 4 part-time consultants. The permanent positions include 3 Board Members, an Executive Secretary, 20 other professional positions and 11 supportive clerical positions. The increase shown for. total personnel compensation results primarily from the Federal pay increase in October 1978. All other Object Classifications. The estimates for all other object classifications for 1980 show a nominal increase of $11,000 over the amounts estimated for these object classifications for fiscal year 1979. Mr. Staats, do you have a statement for us? We will insert your prepared statement in the record. 35-533 - 79 32 (Pt. 2) STATEMENT OF ELMER B. STAATS, CHAIRMAN, COST ACCOUNTING STANDARDS BOARD LEGISLATIVE SUBCOMMITTEE OF THE ON COST ACCOUNTING STANDARDS BOARD MR. CHAIRMAN AND MEMBERS OF THE SUBCOMMITTEE: I am appearing before you today in my capacity as Chairman of the Cost Accounting Standards Board to discuss the budget estimates for Board operations during Fiscal Year 1980. The other Board members who are appointed by me for a period of four years are Mr. Herman W. Bevis, former Senior Partner of Price Waterhouse & Company, certified public accountants; Dr. Gordon Shillinglaw who is a Professor of Accounting at Columbia University; Mr. Fred P. Wacker, Assistant Secretary of Defense (Comptroller); and Mr. John M. Walker, Vice President and Corporate Treasurer of Texas Instruments, Incorporated. Mr. Arthur Schoenhaut is the Executive Secretary of the Board. He serves as director of a professional staff, presently numbering 19 and a total staff of 29. Our budget estimate for Fiscal Year 1980 is $1,800,000. This amount is $50,000 less than was appropriated for Fiscal Year 1979. Before describing the details of our budget estimate, I would like first to review briefly for you the Board's activities to date. The Board has promulgated sixteen Cost Accounting Standards, two interpretations of Standards, and implementing regulations. All of |